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These slides provide complimentary course materials for the Ch 1 of Platform Revolution - How Network Markets are Transforming the Economy and How to Make Them Work for You. Final slides provide reading supplements and links to other chapters for industry and academia.

5.
13 OF THESE ARE PLATFORMS
Based on presence of a developer or buyer/seller ecosystem.
@InfoEco
2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

7.
Source: P. Evans, CGE; CB Insights, Capital IQ, Crunc
North America Europe Africa & Latin
America
Asia
North America has the most $1B+ platform firms, as measured by market cap. China, with a large
homogeneous market, is growing fast. Europe, with a more fragmented market, has less than ¼ the value
of North America
Private
Public
THE PLATFORM ECONOMY IS UNBALANCED
2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

12.
12
Source: P. Evans, “Networks, Data and Platforms,” in
Growing Global: Lessons for the New Enterprise, Center
for Global Enterprise, 2015.
Trends likely to continue and intensify
FORCES OF CHANGE
Surge in data and tools
that can manage and
analyze data
Networks connect physical,
digital, and social
Age of Networks Age of Data
FIRM
Age of Platforms
New business models that that
leverage networks and intelligence
2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

14.
A PLATFORM:
• Is a nexus of rules and
architecture
• Is open, allowing regulated
participation
• Actively promotes (positive)
interactions among different
partners in a multi-sided market
• Scales much faster than a
pipeline business because it
does not necessarily bear the
costs of external production.
PLATFORM
CONSUMERSPRODUCERS
Source: Platform Revolution
Elements of value exchange
2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

21.
To have an external focus,
you must have a
community strategy.
... this implies ...
2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

24.
CRITICAL CAPABILITIES FOR FIRMS IN A PLATFORM WORLD
• Optimize external as well as internal supply chains
• Coordinate a distributed ecosystem
• Build and manage a common data layer
• Reset strategy to emphasize community as an asset, not
just owned resources
2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

25.
TAKEAWAYS FROM CHAPTER ONE
A platform is a nexus of rules and open infrastructure. A platform business enables value-
creating interactions between external producers and consumers. It sets governance conditions
for healthy interactions to occur.
A platform’s overarching purpose: to consummate matches among users and facilitate the
exchange of goods, services, or social currency, thereby enabling value creation for all
participants.
Because platform businesses create value using resources they don’t own or control, they can
grow much faster than traditional businesses.
Platforms derive much of their value from the communities they serve. The best platforms
create strong network effects.
Platforms invert companies, blurring business boundaries and transforming firms’ traditional
inward focus into an outward focus.
The rise of the platform has already transformed many major industries—and more equally
important transformations are on the way.
Source: Platform Revolution2016 Parker & Van Alstyne, with Choudary – licensed under Creative
Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).